Nvidia to Invest $100B in OpenAI, Fed Powell Speaks

Nvidia shares were in focus after reports it plans to invest up to $100 billion in OpenAI, with the first data centre gear to be delivered in 2026. Asian markets hit fresh highs, led by South Korea and Taiwan, while futures priced in further US rate cuts despite mixed Fed commentary. Political risks lingered with a potential US government shutdown on September 30 as negotiations remain deadlocked.

Equities

The FTSE 100 closed 0.11% higher on Monday, supported by strong gains in mining stocks. Gold miners tracked record highs in bullion, with Endeavour Mining climbing 6.9% to lead the index. Mid-cap peer Hochschild rose 8.4%, while Glencore and Rio Tinto each advanced about 2%. The broader industrial metal miners index added 1.6%.

Losses were seen in automotive stocks after Porsche cut back its electric vehicle expansion plans and, together with parent Volkswagen, lowered its profit guidance. Aston Martin slipped 1.5% while Dowlais Group fell 2.5%. Airlines were also under pressure after delays linked to a cyberattack at European airports, with EasyJet, British Airways owner IAG, and Wizz Air closing between 1.3% and 3.2% lower. Among other movers, Tate & Lyle dropped 6.4% after Morgan Stanley downgraded the stock to “underweight”.

In the United States, Wall Street’s main indices closed at record highs for a third consecutive session on Monday. The Dow Jones Industrial Average rose 0.14% to 46,381.54, the S&P 500 gained 0.44% to 6,693.75, and the Nasdaq Composite climbed 0.70% to 22,788.98. Technology stocks led the advance, with Nvidia rising 3.9% after announcing it will invest up to $100 billion in OpenAI and supply data centre chips. Apple closed 4.3% higher after Wedbush raised its price target on optimism around strong iPhone 17 demand. Tesla gained 1.9% during the session.

Healthcare stock Kenvue fell 7.5% as investors anticipated comments from President Donald Trump linking Tylenol to autism. After the market closed, Trump said the US Food and Drug Administration would advise doctors against recommending acetaminophen to pregnant women. Shares of Kenvue bounced 4.7% higher in after-hours trading.

Forex & Commodities

The US dollar traded steadily in Asian markets after losing ground on Monday, with the dollar index last at 97.33. Against the yen, the greenback was unchanged at 147.8, remaining inside the same range it has held since early August. Sterling was little moved at $1.351, while the euro stood at $1.180. The Indian rupee weakened to a record low of 88.62 against the dollar during the morning session, weighed by increased hedging demand and higher US visa fees. The New Zealand dollar slipped to $0.5848 ahead of the government’s announcement on Wednesday regarding the appointment of a new central bank governor. The offshore yuan traded at 7.116 per dollar, with state-owned banks reported to have stepped in to slow its appreciation.

Gold prices continued their advance early this morning, reaching a fresh record high of $3,759 per ounce before settling at $3,753. Silver eased to $43.82, close to its highest levels since 2011. Platinum traded at $1,413 and palladium at $1,182.

Oil prices extended their decline for a fifth consecutive session on Tuesday. Brent crude fell to $66.15 per barrel, while US West Texas Intermediate dropped to $61.92. The weakness followed an agreement between Iraq’s federal government and the Kurdish regional administration to restart oil exports of about 230,000 barrels per day through Turkey, suspended since March 2023.